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The Gatedown Company's bank statement has an ending cash balance of $14,110.00.  The cash account       in the general ledger has a balance of $12,477.00.  Based on the following reconciling items, prepare a       bank reconciliation.       a)  Bank service charge of $20.00       b)  Deposit in transit $3,190.00       c)  A check was returned NSF $645.00       d)  Outstanding check $688.00       e)  Note collected by the bank, credit memoranda, $4,800.00   What is the total of subtractions to arrive at the book balance?   A) 645.00   B) 555.00

The Gatedown Company's bank statement has an ending cash balance of $14,110.00.  The cash account       in the general ledger has a balance of $12,477.00.  Based on the following reconciling items, prepare a       bank reconciliation.       a)  Bank service charge of $20.00       b)  Deposit in transit $3,190.00       c)  A check was returned NSF $645.00       d)  Outstanding check $688.00       e)  Note collected by the bank, credit memoranda, $4,800.00   What is the total of subtractions to arrive at the book balance?   A) 645.00   B) 555.00

Corporate Financial Accounting
Corporate Financial Accounting
14th Edition
ISBN:9781305653535
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter7: Internal Control And Cash
Section: Chapter Questions
Problem 7.3BE
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QUESTION 9

  1. The Gatedown Company's bank statement has an ending cash balance of $14,110.00.  The cash account

          in the general ledger has a balance of $12,477.00.  Based on the following reconciling items, prepare a

          bank reconciliation.

     

        a)  Bank service charge of $20.00

     

        b)  Deposit in transit $3,190.00

     

        c)  A check was returned NSF $645.00

     

        d)  Outstanding check $688.00

     

        e)  Note collected by the bank, credit memoranda, $4,800.00

     

    What is the total of subtractions to arrive at the book balance?

      A)

    645.00
      B)

    555.00
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